Today, the Australian Bureau of Statistics released the latest data – Labour Force, Australia, September 2018 – which show that the Australian labour market has weakened, with employment growth virtually zero. Compounding that weakness was a sharp decline in the participation rate (0.3 points). Taken together, unemployment and the unemployment rate fell but this is a sign of weakness not improvement. The decline in unemployment is because workers gave up looking for jobs in a weak labour market. Monthly hours worked remained on a flat trend. Overall, my assessment is that the Australian labour market remains in a fairly weak state and, is still a considerable distance from full employment. There is clear room for some serious policy expansion at present.